USD/JPY is currently above the support level of 113.75 and is still following the bullish bias. There has been more corrective volatility while bouncing off from this level but still the bullish bias continues as the price is holding above 113.30-75 support area. Today, the Bank of Japan released a Core CPI report in the early session which did not show much difference. The core CPI came in at 0.2% in January from 0.1% previously. On the other hand, the US Trade Balance was negative at -48.5B, more than the forecast of -47.0B. Overall, the context is still inside a small corrective structure as there were no positive reports today which could change the dynamic. Currently we are bullish about this pair as JPY is still set for a stable growth thanks to the fundamental data.
Now let us look at the technical view. Price is just above the event level of 113.75 which was previously well respected by the price as both support and resistance. As of the price behavior off the level, we can say that bulls are waiting at the level to push the price high as 61.8% retracement is already done in this pair. Currently, the market is in a bullish bias. After stalling above the support area of 113.30-75, the price is going to bounce up towards 114.75 soon. On the other hand, if the price takes out 113.30 support with a daily close on the downside we will shift our bullish bias to bearish.